South African Airways (SA, Johannesburg O.R. Tambo) has delayed finalising its 2023/2024 annual report to address outstanding issues - including an undisclosed disputed matter that could significantly affect the results - aiming for a better audit outcome and improved prospects to raise funding.

This was disclosed by Maropene Ramokgopa, Minister in The Presidency for Planning, Monitoring and Evaluation, in a letter to the Speaker of Parliament on July 26, in which she explained why she would be unable to table SAA's annual report, audited financial statements, and audit reports for the 2023/24 financial year by September 30, 2024, as required. However, she assured parliament she would "submit them promptly once they are finalised." South Africa's Public Finance Management Act (PFMA) requires public entities to table their financials before lawmakers within six months after the end of the financial year.

In her letter, the minister alluded to "a matter under dispute that may materially impact the 2023/24 results" but gave no further insight. On inquiry, a spokesperson for her office said: "SAA management is engaging with the Auditor-General of South Africa to finalise the audits. Once they are finalised, SAA will release the results. The audit is still underway, so there cannot be a pronouncement prior to its conclusion."

Ramokgopa said ongoing audits for the years 2018/19 to 2022/23 have prevented SAA from implementing certain recommendations to improve audit outcomes. "Delaying the submission of the approved draft annual financial statements for auditing will allow SAA to implement some of these recommendations, thereby improving the audit outcome. An improved audit outcome will be invaluable as the company seeks to raise funding," she explained.

SAA subsequently confirmed this: "SAA management is currently engaging the Auditor General with the aim of improving the audit outcomes as per the AG's recommendations, and these should be concluded in the next few months. SAA is committed to submitting its annual financial results once all audit processes have been finalised," it said in a statement to ch-aviation.

The airline previously failed to file its annual results for four years, blaming its 17-month business rescue process between December 2019 and end-April 2021. On November 3, 2023, it eventually signed off its annual reports ending March 2019, 2020, 2021, and 2022.

SAA's current funding efforts are driven by the need for operational stability, the failure of privatisation efforts with the Takatso Aviation Consortium, and the government's decision not to provide further state bailouts.